Traditional Culture Encyclopedia - Traditional customs - What does zero inventory mean?

What does zero inventory mean?

Zero inventory is a special concept of inventory. Zero inventory does not mean that there is no reserve or no reserve. The so-called zero inventory,

Refers to materials (including raw materials, semi-finished products and finished products, etc. ) in one or more business links such as procurement, production, sales and distribution.

If it doesn't exist in the form of warehouse storage, it can avoid a series of problems in warehouse inventory, such as warehouse construction, management expenses, inventory maintenance,

Storage, loading and unloading, handling and other expenses, the occupation of working capital by inventory and the aging, loss and deterioration of inventory. )

Are in a state of turnover. It doesn't refer to things or things in the form of warehouse storage.

The storage quantity is indeed zero, but the inventory is minimized by implementing specific inventory control strategies.